How to keep physical gold in an IRA. People who want exposure to precious metals in a retirement account can invest in stocks of mining companies, investment funds that hold those stocks, or in a gold ETF. Gold IRAs are normally defined as “alternative investments,” meaning they are not traded on a public stock exchange and require specialized expertise to value them. The practical concern is to find an IRA trustee who is willing to set up a self-directed IRA and facilitate the physical transfer and storage of precious metal assets.
Once a traditional IRA owner is 72 years old, annual IRA Required Minimum Distributions (RMDs) must also be made. Once you’re 72 years old, you’ll be required to accept the required minimum payouts (RMDs) from a traditional Gold IRA (but not from a Roth IRA). The IRS has issued private letter rulings to the most important gold ETFs, which state that IRAs may own the ETFs. If a reputable brokerage firm acts as an IRA trustee, it probably won’t even let an IRA buy shares in an ineligible ETF in the first place.
Therefore, for federal income tax purposes, the transaction is marked as a taxable distribution by the IRA, followed by a purchase of the metal or coin by the IRA owner (that would be you). The ability to use gold and other materials as securities in an IRA was introduced by Congress in 1997, according to Edmund C. However, the coins or precious metals must be held by the IRA trustee or custodian, and not by you as the IRA owner. The ETF is also able to buy, store, and insure gold at a much lower price than you or an IRA custodian can.
The big practical concern is finding an IRA trustee who is willing to set up a self-directed IRA and facilitate the physical transfer and storage of precious metal assets. While it’s legal to own gold or silver via an IRA or other retirement account with some restrictions, it’s not the best or most efficient way to own precious metals. For example, you could have an IRA that is invested in bullion bullion and another IRA that is invested in liquid assets such as listed stocks and mutual funds. After doing this research, you’ll likely conclude that gold or precious metals and coins shouldn’t be owned by your IRA.
